Bank of America 2005 Annual Report Download - page 7

ideas. Our record of in-
novation lets customers
know we are constantly
working to create value
for them.
In our retail busi-
ness last year, we had
success with a number of
innovative offerings. We
enhanced our SafeSend®
product, making it a free
relationship-building
service that enables cus-
tomers with a checking
account to send money
directly to individuals in
Mexico. We launched our
Keep the Change™ fea-
ture, which helps customers save by rounding up debit card
purchase amounts and moving the change to a linked sav-
ings account. And we launched our SiteKey™ online security
feature, which has won several awards.
Our wealth management business introduced a new
trust product for the mass affl uent market last year.
And our investment banking group introduced a new
electronic trading service platform that provides institu-
tional investors with automated access to diverse liquidity
systems and venues.
While innovation often relates directly to new products
and services, we also are taking advantage of innovative
thinking as we work in teams that span the company to
create more value for customers and shareholders. Referred
to generally as “Universal Bank Initiatives,” these projects
require integrated planning and enterprise thinking to
maximize the value of the company.
For example, the “Mortgage Business System” is
designed to enable us to originate a variety of asset
classes and then move those assets into the hands of
investors through our securities distribution capabilities.
Our goal is to expand our ability to meet customers’ needs
across all market segments and create more value for
our shareholders by exploiting business opportunities
that span the enterprise.
Seizing new opportunities. As I wrote above, our
commitment to growth by one means does not preclude our
ability to take advantage
of growth opportuni-
ties by other means. In
2005 we again demon-
strated our ability to
act decisively and to
maximize the value of the
assets we acquire.
Our top priority from
the beginning of the
year was to complete
our transition work in
the Northeast related to
our acquisition of Fleet.
Through the spring and
summer of ’05, we execut-
ed major systems conver-
sions across all our lines
of business, affecting thousands of associates and millions
of customers and accounts, all without a signifi cant hitch.
Then, in June, we agreed to acquire MBNA. The oppor-
tunities for growth in this acquisition are signifi cant, from
product and distribution benefi ts for customers, to revenue
opportunities resulting from our combined strengths,
to cost savings derived from consolidating our operations.
For example, the combination of our distribution platform
and customer base with MBNA’s products, affi nity relation-
ships and marketing expertise creates huge opportunities
for our company.
As the largest issuer of credit and debit cards in the
country, we will have the opportunity to lead in the ongo-
ing evolution of the payments system in the United States.
This leadership role will result in many benefi ts, including
greater negotiating leverage with partners in the process
and the ability to develop and deploy new capabilities and
technologies in the payments system.
Also in the early summer, we agreed to buy 9 percent of
the stock of China Construction Bank (CCB) for $3 billion,
with an option to increase our stake to 19.9 percent in the
future. Just as important, we have launched a consultative
effort with CCB through which we will assist in their efforts
to improve their operational effi ciency and effectiveness
and bring their fi nancial management and governance
processes in line with international standards.
Communities and leadership. As we pursue growth, we
Amy Woods Brinkley, Global Risk executive, and Alvaro G. de Molina,
chief fi nancial offi cer, above the Bank of America trading fl oor.
6 Bank of America 2005